Why?

Risk analysis is critical for establishing the worthiness of a certain project or investment and the appropriate process(es) to manage such risks.

How?

A risk analyst begins by determining what may go wrong. These disadvantages must be balanced against a probability meter that assesses the chance of the event occurring.

The scale is typically rated from zero to one. That is, if the likelihood of the risk occurring in the project is 0.5, it has a 50% chance of occurring

There is also an effect scale that ranges from one to five, with five having the most impact on the project. The risk will then be classified as source- or effect-based. 

Once risks have been identified and examined, a member of the project team is appointed as the risk owner for each risk. They are in charge of developing and implementing a risk response strategy.

Quantitative risk analysis analyses the various project outcomes and calculates the likelihood of attaining project objectives. 

This aids decision-making, especially during the project planning phase when there is ambiguity.

It assists project managers in developing realistic cost, schedule, and scope objectives.

• Analytical process that does not use numerical and quantitative evaluations to identify and assess hazards.

• It involves numerical and quantitative evaluations.

• It can be done in every kind of project.

• It is not required for all projects; in some kinds of them it can be avoided. 

• It gives a subjective evaluation of probability and impact. 

• Gives an objective evaluation and a probabilistic estimate of time and costs. 

• Easy to perform.

• It’s more time consuming than a qualitative analysis.

• No specific software or tools required.

• It may require some special tools to be realised. 

• Qualitative
• Quantitative

• Analytical vs. numerical
• Subjective vs. objective

The risk analysis matrix ranks the severity of any given risk based on the likelihood and impact of the disruption associated. 

Its primary goal is to assist managers in prioritizing risks and developing a risk management strategy that includes the appropriate resources and tactics for risk mitigation. 

A risk register is a repository in which outputs of risk management processes are recorded. Information in a risk register can include the person responsible for managing the risk, probability, impact, risk score, planned risk responses, and other information used to get a high-level understanding of individual risks. 

SWIFT is an acronym that stands for Structured What If Technique. 

It is a risk analysis strategy that focuses on detecting possible hazards connected with project plan modifications. 

As the term implies, team members must generate as many “what if” questions as possible in order to identify all potential hazards.
 

SWIFT employs structured brainstorming, which combines a pre-set of guidewords (such as scheduling, amount, etc.) with participant-generated prompts that frequently start with questions like "what if?" or "how could?". 

With the aid of the guidewords and "what if?" questions, the facilitator invites the group to bring up and discuss issues like: 

• Bow Ties Analysis
• Risk Analysis Matrix
• Risk Register
• SWIFT Analysis